With the overnight session testing Monday's highs and failing came a gap down at the open. The gap was right at my key support area: 1108-1110 and quickly rallied in an attempt to close the gap. The rallied failed right near yesterday's close and turned over to a new low (1105) and then rallied to finish the day right beneath what is now a key resistance area (1108/1110).
This new wave structure is likely not over with a test coming of the 1100/1103 area with the rising support line right in that area. However, the wild card tomorrow is that its Fed day and those tend to be bullish days, so it should be interesting to see how it plays out. If I recall, the last Fed day didn't turn out to be so bullish, but then the market rallied the rest of the week, so that could be in the cards once again if this is just another corrective wave structure and we further subdivide.
The dollar continued its bullish posture and the equity markets once again did not respond. Something smells of manipulation going into opex this Friday. It would be interesting to catch the bulls going the other way for once though ;-).
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